Bitcoin Price Watch; Here’s What’s On This Evening

And so we are done with another day in our bitcoin price trading efforts, meaning it’s time to take a look at how action matured throughout the European session today and use this action to put forward a strategy with which we can carry forward into the US session this evening. We have had some pretty volatile action over the last few days, but things seem to have settled down a little bit today and we are heading into the final day of the week relatively flat on the day’s open. Price currently trades in and around the 3400 mark, with the day’s range spread between 3311 and 3448 (so far).

As readers can tell, with was trading somewhere around the middle of this range, there’s a good chance we won’t see a considerable daily breakout moving into the session this evening. We may get some activity in between these two key levels, however, insist that action that we are going to try and capitalize on removing the session tonight.

So, with that noted, let’s get some levels in place with which we can try and draw a profit from the market moving forward. As ever, take a quick look at the chart below before we get started so as to get an idea of where things stand and where we are looking to get in and out of the markets according to the rules of our intraday strategy.

It is a one-minute candlestick chart and it has our key range overlaid in green.

As the chart shows, the range we are looking at right now is defined by support to the downside at 3400 flat and resistance to the upside at 3429. If we see a break above resistance, we will enter long towards 3450. Conversely, a close below support will have us in short towards 3380.

Cryptocurrency exchanges provide all markets with plenty of liquidity. Having more platforms trading a specific currency can have a positive effect on the price over time. Ethereum is traded across dozens of global exchanges, except Bitstamp. That situation will change very soon, as the company announced ETH trading will launch on August 17th. A major development for ETH enthusiasts, to say the least.

The Bitstamp exchange platform has a solid reputation among cryptocurrency users. The company has been around for quite some time now. Moreover, they provide plenty of interesting trading markets. Their fiat currency gateways make it easier to buy cryptocurrency as well. So far, Bitstamp is one of the few platforms not paying attention to Ethereum. Quite unusual, considering ETH is the second-largest cryptocurrency right now.

Ethereum Trading is Coming to the Bitstamp Exchange

There appears to be a growing demand for Ethereum trading as well. The company has been working on this integration for quite some time now. It appears Ethereum trading will arrive on Bitstamp come August 17th. That is great news for anyone who believes in this particular cryptocurrency. Especially with the value of ETH going up these past few days. Cryptocurrency is about more than just Bitcoin these days, which is a positive development. Competition is never a bad thing by any means.

As a result of this change, Bitstamp will introduce three new trading markets. Users can exchange Ethereum against Bitcoin, the US Dollar, and the Euro. It is good to see more fiat currency gateways for Ether. Especially on a reputable exchange such as Bitstamp. There will also be a significant trading fee discount for all Ethereum-based orders. This discount will run until January 1st of 2018. Having access to cheaper trading options is never a bad thing, that much is certain. Make sure to check out the trading fee discount schedule on the Bitstamp website first and foremost.

Ethereum trading is not the only change coming to Bitstamp. The company introduces a unified pricing structure. No longer having a separate fee schedule or each trading pair makes a lot more sense. Customers can now trade based on their 30–day volume on all trading pairs. A higher volume will result in lowered trading fees, which is always beneficial to platform users. Both of these upcoming changes will help elevate Bitstamp to new heights. Whether or not their ETH trading market will pan out, remains to be seen.

Another day and another push for profit in the bitcoin price space awaits. Those that caught our analysis last night will know that we were hoping for a strong continuation of the action that we had seen so far throughout the week but, given the market’s potential for correction, we would be on the lookout for a reversal. More importantly, we’d be ready as and when it hit.

Overarching momentum didn’t give us too much of a downside. As the European morning show kicked off, however, we did see a setback, and we’re now trading in and around the lower end of the corrective move. We’re still plenty above where we were this time last week and it’s looking like this correction is something that should be pretty easy to ride out on the way back to the upside.

Anyway, whatever happens during the European session today, so long as we’re on the ball with our risk management parameters, we’ll be in the green.

So, let’s get some levels put in place with which we can push forward into the European session this morning and – beyond – into the US session tonight. As ever, get a quick look at the chart below before we get started so as to get an idea of what’s on and where we are looking to jump in and out of the markets as and when we see any volatility. It’s one-minute candlestick chart and it’s got our key range overlaid in red.

As the chart shows, the range we are targeting during today’s session is defined by support to the downside at 3384 and resistance to the upside at 3403. A close above resistance will have us in long towards 3430. Conversely, a close below support will put us in short towards a target of 3330.

Electric self-driving cars, clean fuel and carbon footprint reduction are is name of the game. Companies are striving to find new and better ways to create renewable energy sources, and are willing to spend large sums of money to make that happen. Private individuals are also getting in on the action, seeking new ways to reduce electricity charges while at the same time ‘saving the planet’ and producing revenue.

The issue, of course, is that these systems are not cheap. While prices have come down somewhat, the cost of solar panels is still substantial, and the cost of full solar arrays is very high. While the investment generally pays good returns, the entry barrier is nearly insurmountable.

Revolutionary Investment

One company, though, has created a platform that allows lesser financed investors to participate in investments like solar panel arrays. Mybit.io, conceived by founder Ian Worrall, is a system designed based on the blockchain technology that allows distributed investment. Put simply, the company makes it possible for smaller investors to pool their resources and invest in larger scale investments without centralized companies. According to the company, “What MyBit does is enable ownership of a specific IoT asset to be easily distributed among several owners (investors). With the rise of the upcoming machine economy, our vision is to have machines owned by people all over the world, rather than centralized parties maintaining ownership and the resulting revenue streams.”

The very nature of investment on this scale makes a decentralized system a simple and brilliant solution. Smaller scale investors can now take advantage of large scale investments without the complexity of needing a centralized business source that tends to gobble profits.

Going Green

The solar grid concept became an excellent test case for the investment company. The proliferation of solar power, and the expansion of global power needs, creates a perfect storm for investors who are willing to buy into energy creation schemes. Most solar grids today are exceptionally large and are maintained by local governments. These solar grids are called ‘solar farms’ and sometimes contain thousands of solar panels. However, the shift in the marketplace is toward micro or nano-grids – grids of solar panels that are owned by individual residents. These small scale solar grids are actually producing energy and generating revenue. According to MyBit, “these “prosumers” (producers and consumers) monetize their space to gain progressive independence from the grid and create revenue streams.”

However, the cost barrier to entry is still substantial. Therefore, MyBit aims to make ownership in these sorts of panel systems a decentralized commodity. Investors from around the world can help fund the building of a solar panel grid, and then receive revenue from the grid itself.

Because of the decentralized nature of the platform, investors would be able to receive revenue in real time as energy is created and profits are realized. The solar grids would be ‘connected’ – that is, connected to the internet, and would make tracking and sharing of revenues seamless and simple. The concept has created quite a stir as investors understand the almost immediate opportunity for returns.

MyBit ICO

If it sounds like a good system, it is. The entire scheme works well because it provides a vehicle for immediate profits on investments that are simple and hands off. Unlike other ICOs, where investors are forced to rely on the value of the coin itself, MyBit provides a system that allows investors to profit immediately and consistently. The company is actively conducting an ICO at this time, but the window of opportunity is closing. The sale will conclude by August 17th, after which time the tokens will only be available on the secondary market. Investors will likely have to pay a premium once the sale has closed.

For investors who are sick of watching the good deals pass by, MyBit is an opportunity to take advantage of large scale investment opportunities with limited up front risk. Rather than fully funding a solar grid, MyBit makes distributed investments in solar power possible and practical.

Things are getting quite interesting as far as Bitcoin is concerned. More specifically, there is a serious fork potential to this very day. Even though Bitcoin Cash split off already, SegWit2x still poses a risk. Most traders aren’t too concerned about these potential forks, though. Instead, they see a bright future ahead for the Bitcoin price in general. Whether or not they are correct, remains to be determined, though.

The split between BTC and BCH hasn’t caused any major issues. In fact, both ecosystems seem to be just fine on their own. The Bitcoin Cash price is still going down quite a bit as we speak, though. However, this “split” has not caused any of the issues people assumed at first. Then again, that doesn’t mean Bitcoin won’t face any future challenges either. There is still a chance SegWit2x supporters will split off from the main chain as well. That poses yet another risk for Bitcoin supporters, although things are not necessarily gloomy either.

A new Bitcoin Fork can Create Major Waves

In fact, the opposite effect may occur. Mooti Digital identity CEO Brad Chun feels more institutional money will pour into Bitcoin in the future. With the BTC price reaching new all-time highs in quick succession last week, things look pretty good for the time being, to say the least. The future’s looking brighter than ever for Bitcoin, that much is evident. Whether or not we will see any further notable gains this year, remains to be seen. Some people feel BTC will reach US$5, 000 by December 31st. An ambitious goal, but not one that is impossible to achieve either

It will all depend on whether or not we will see more Bitcoin forks in the future, though. Bitcoin Cash is off doing its own thing, that much is evident. Bitcoin survived this split without too many problems. In fact, the BTC price went up as a result of this fork. That is a rather intriguing turn of events, to say the least. Many people predicted the price would take a turn for the worse, but that hasn’t happened so far. Traders perform actions based on technical analysis, which is still quite bullish for now. It is evident good things may happen for Bitcoin in the future.

The upcoming SegWit2x hard fork, however, still leaves room for confusion and speculation. The year 2017 has been pretty solid for Bitcoin as a whole. However, what goes up in value must eventually come down as well. A second fork this year can send the markets in either direction pretty quickly. After all, it only takes a small bit of news to send the market into a downward spiral again. After so much positive news, there is a lot of hype, but that can’t be sustained indefinitely either. It will be interesting to see what happens to Bitcoin in the future. A new fork will have consequence sin one way or another, though.

Key Highlights

ETH price corrected lower after trading as high as $313.62 against the US Dollar.

There was a false break noted below a bullish trend line with support at $290 on the hourly chart of ETH/USD (data feed via SimpleFX).

There pair is back above the bullish trend line, but struggling to move above the $300 level.

Ethereum price started a downside correction against the US Dollar and Bitcoin, and now ETH/USD is consolidating below the $300 handle.

Ethereum Price Support

Yesterday, we saw a new monthly high near $313.62 in ETH price against the US Dollar. Later, the price started a downside move and traded below the $310 and $300 levels. There was even a break below the 23.6% Fib retracement level of the last wave from the $265.50 low to $313.62 high. The price declined towards $270 and traded as low as $277.41 where it found support.

During the downside move, there was a break below a bullish trend line with current support at $290 on the hourly chart of ETH/USD. It seems like it was a false break below the $285 level. The pair is currently back above the bullish trend line, but struggling to move above the $300 level. It recently traded close to the 61.8% Fib retracement level of the last decline from the $313.62 high to $277.41.

However, a connecting bearish trend line prevented gains above $300. The price is moving back lower and may retest the bullish trend line at $290. It must hold the trend line support and $290, it ETH/USD has to resume its upside move in the near term. A close below $290 would call for a retest of the last low of $277.

Key Points

Bitcoin cash price failed to move above the $360 level against the US Dollar and moved down.

There is a new connecting bearish trend line with resistance near $320 forming on the hourly chart of BCH/USD (data feed from Kraken).

The price might extend the decline and could even trade towards the $275 support zone.

Bitcoin cash price is struggling to gain pace against the US Dollar. BCH/USD faces hurdles on the upside and might decline towards $280-275.

Bitcoin Cash Price Decline

There was no increase in buying interest for Bitcoin cash price, and it failed to move above $360 against the US Dollar. The price is attempted an upside break, but failed and started declining with a break below $340. The downside move was such that the price broke the $320 support and the 100 hourly simple moving average. It recently traded close to the $300 level and formed an intraday low of $299.02.

On the upside, there is a new connecting bearish trend line with resistance near $320 forming on the hourly chart of BCH/USD. Below the trend line, the 100 hourly simple moving average is positioned along with the $320 resistance. Moreover, the 23.6% Fib retracement level of the last decline from the $390 high to $300 low is also near the trend line resistance. Therefore, it won’t be easy for BCH buyers to take the price above $320.

On the downside, the price is likely to test $280-275 if it fails to move above $320. A break and close above $320 would result in further gains may be towards the $340 zone or even $350.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is losing grip and might move down further in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is currently well below the 50 level.

Bitcoin price seems to be stalling from its climb and might form a short-term reversal pattern.

A head and shoulders formation looks imminent on the 1-hour time frame if price dips back to the $3300 support.

A break below this neckline could confirm the potential selloff, which might mean around $200 in losses.

Bitcoin price is in the middle of forming a head and shoulders pattern on its short-term chart if bulls have trouble sustaining the climb.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. In other words, the rally is more likely to carry on than to reverse. Price is also finding support at the 100 SMA dynamic inflection point for now.

The chart pattern is approximately $200 tall so the resulting drop could be of the same size, taking it down to the 200 SMA dynamic support next. Stochastic is heading down from the overbought area so bitcoin price might follow suit. RSI, on the other hand, is turning higher to signal the presence of bullish pressure.

Market Factors

Rising geopolitical risks from the escalating tension with North Korea could keep bitcoin price supported in the near term. Cryptocurrencies typically enjoy stronger demand during these situations as investors seek high returns outside of traditional assets like stocks or commodities.

Apart from that, the bitcoin network upgrade also keeps this particular digital asset supported as it allows the handling of more transactions. There have been no major issues for nearly a week already so investors are increasingly confident that the transition has been smooth.

However, the US dollar is also drawing support from upbeat leading indicators that support the odds of a September interest rate hike. Markets are turning to the US CPI release on Friday to see if one more tightening move is possible, along with the start of the balance sheet runoff around the same time.

Market sentiment could remain the bigger driver of bitcoin price action until then as headlines on North Korea could influence overall risk appetite and spur more volatility than usual.

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